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TPG-backed Flexituff to spin off bulk container business

By Keshav Sunkara

  • 26 Jul 2017
TPG-backed Flexituff to spin off bulk container business

Flexituff International Ltd will spin off its flexible intermediate bulk container (FIBC) business into a wholly owned subsidiary.

Founded in 1993, public-listed Flexituff offers products such as form stable baffle bags, form fitted liner bags, glued liner bags, biaxially oriented polypropylene (BOPP) bags, geo-textile fabrics and polymer compounds, among others. FIBCs are used in industrial bulk packaging in pharmaceutical, fertilizer and food industries.

The repositioning of the FIBC business as a separate entity will help unlock value and raise growth capital, the company said in a statement.

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The restructuring is expected to be completed within four months.

In 2016-17, the FIBC business contributed around 44% to the company’s revenues which stood at Rs 1,335 crore.

Madhya Pradesh-based Flexituff counts World Bank’s private investment arm International Finance Corporation and private equity firms TPG Capital and Clearwater Capital Partners as investors.

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In April 2013, TPG Capital invested Rs 135 crore ($25 million then) in Flexituff. The private equity major had previously invested Rs 27 crore ($5 million then) in the bulk container manufacturer.

In 2007, Clearwater invested Rs 46 crore in Flexituff, picking a 26.07% stake. The PE firm part-exited during the company’s initial public offering in 2011.

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